The Federal Theatre Project (FTP; 1935–1939) was a theatre program established during the Great Depression as part of the New Deal to fund live artistic performances and entertainment programs in the United States. It was one of five Federal Project Number One projects sponsored by the Works Progress Administration, created not as a cultural activity but as a relief measure to employ artists, writers, directors, and theater workers. National director Hallie Flanagan shaped the FTP into a federation of regional theaters that created relevant art, encouraged experimentation in new forms and techniques, and made it possible for millions of Americans to see live theatre for the first time. Although The Federal Theatre project consumed only 0.5% of the allocated budget from the WPA and was widely considered a commercial and critical success, the project became a source of heated political contention. Congress responded to the project's racial integration and accusations of Communist infiltration and cancelled its funding effective June 30, 1939. One month before the project's end, drama critic Brooks Atkinson summarized: "Although the Federal Theatre is far from perfect, it has kept an average of ten thousand people employed on work that has helped to lift the dead weight from the lives of millions of Americans. It has been the best friend the theatre as an institution has ever had in this country."

We let out these works on the vote of the people.

— Motto of the Federal Theatre Project, from an inscription at the third century B.C. Greek theatre on Delos

Part of the Works Progress Administration, the Federal Theatre Project was a New Deal program established August 27, 1935, funded under the Emergency Relief Appropriation Act of 1935. Of the $4.88 billion allocated to the WPA, $27 million was approved for the employment of artists, musicians, writers and actors under the WPA's Federal Project Number One.

Government relief efforts funding theatre through the Federal Emergency Relief Administration and Civil Works Administration in the two preceding years were amateur experiments regarded as charity, not a theatre program. The Federal Theatre Project was a new approach to unemployment in the theatre profession. Only those certified as employable could be offered work, and that work was to be within the individual's defined skills and trades.

"For the first time in the relief experiments of this country the preservation of the skill of the worker, and hence the preservation of his self-respect, became important," wrote Hallie Flanagan, director of the Federal Theatre Project. A theater professor at Vassar College who had studied the operation of government-sponsored theatre abroad for the Guggenheim Foundation, Flanagan was chosen to lead the Federal Theatre Project by WPA head Harry Hopkins. Flanagan and Hopkins had been classmates at Grinnell College. Roosevelt and Hopkins selected her despite considerable pressure to choose someone from the commercial theatre industry; they believed the project should be led by someone with academic credentials and a national perspective. Flanagan had the daunting task of building a nationwide theater program to employ thousands of unemployed artists in as little time as possible. The Theatre industry had struggled financially prior to the financial collapse of 1929. By that time it was already threatened with extinction due to the growing popularity of films and radio, but the commercial theatre was reluctant to adapt its practices. Many actors, technicians and stagehands had suffered since 1914, when movies began to replace stock, vaudeville and other live stage performances nationwide. Sound motion pictures displaced 30,000 musicians. In the Great Depression, people with little money for entertainment found an entire evening of entertainment at the movies for 25 cents, while commercial theatre charged $1.10 to $2.20 admission to cover the cost of theater rental, advertising and fees to performers and union technicians. Unemployed directors, actors, designers, musicians and stage crew took any kind of work they were able to find, whatever it paid, and charity was often their only recourse.

"This is a tough job we're asking you to do," Hopkins told Flanagan at their first meeting in May 1935. "I don't know why I still hang on to the idea that unemployed actors get just as hungry as anybody else."

Hopkins promised "a free, adult, uncensored theatre" — something Flanagan spent the next four years trying to build. She emphasized the development of local and regional theatre, "to lay the foundation for the development of a truly creative theatre in the United States with outstanding producing centers in each of those regions which have common interests as a result of geography, language origins, history, tradition, custom, occupations of the people."